Pension transfer technology
At PensionBee we’ll always attempt to use electronic transfer technology to quickly, safely and efficiently send and receive your pension money. When we send or receive to other providers who also use this technology, the transfer will happen in around two weeks. This technology is used by most of the industry and ensures that transfers are safe; your money is tagged and traced and we know where it is at all times.
So why is my old provider still using post in the 21st century?
Good question! The transfer technology exists to make your transfer fast and safe, it’s just that the paper providers Willis Towers Watson, Aon Hewitt, Mercer and Capita refuse to use it. Not only do they want to keep hold of your money to earn more fees, they also know if they send lots of confusing forms by post you might give up trying to switch provider.
But not only is it much safer to send funds electronically, it’s much cheaper for you and for providers. We calculated that it’s costing consumers over £1 billion to deal with these paper transfer processes. It’s not fair and it needs to stop.
What can I do to speed up my transfer?
The only way that the paper providers are going to start using safe electronic transfers is if you complain to them directly. It’s your money, you have the power as a policyholder to challenge their behaviour. There are a few ways you can do that:
- Tweet the provider’s corporate Twitter account asking why they refuse to use safe, electronic transfers to move your money #nomorepapertransfers
- Tell your former employer who put you in the scheme that you are now trapped in a paper transfer quagmire and it’s a nightmare to leave
- Expose the problem! Tell all your former and current colleagues that they are also trapped in a scheme it will cost them months of precious time and money to try and leave – get them to write letters and tweet too.
While many still rely on post and paper there are a few who, alongside PensionBee, are challenging the status quo. Read more about PensionBee’s modern, mobile, paper-free pensions and find out which providers are the slowest to transfer a pension in our annual Robin Hood Index.
As always with investments, your capital is at risk. The value of your investment can go down as well as up, and you may get back less than you invest. This information should not be regarded as financial advice.
Last edited: 27-02-2020